@Tony,
No question the three letters "KSL" draw every single possible opinion and emotion in North Lake Tahoe. I'm not sure if going very deep with that discussion helps with what Alterra's plans are, but since so many have had that specific experience with a couple of "KSL owned/funded" properties, it's crazy to ignore it.
I'm not a local to Tahoe, or to CA. I first visited Squaw, though in 1960, as a six year old to watch the Olympics. I've been back "a lot." I have one adult child who lives in the Tahoe basin and works in the business. I have two nieces who life in SF, and spend most every weekend in Truckee. So not a local, but not totally clueless. I've been skiing since I was two, and many of my family have been on the business. One thing that's sort of undeniable is that "the business" is very different in almost every respect that it once was. And, we all have a tendency to wish at times that things would remain frozen in time as they are, or even better, reverted to how they once were. So, there are always folks who want minimal change, because an area, a resort, a geographic area have worked well for them. However, to survive and thrive, many of these places need to evolve and grow. And it can be painful.
I like think that Andy Wirth, the CEO of Squaw/Alpine, "runs" Squaw Valley. I'm not close enough to remark on which lifts spin, or sit idle, how the hours have changed, etc. I do know that in the Alex Cushing years, a lot of lifts went up, a lot of great terrain was opened and not a ton of long range thought otherwise happened. So you have this incredible physical gem {along with Alpine}, and at some point, the realization is that it has the potential to be a true world class destination resort, but it's not. It needs more hotels. It needs beds. The traffic stinks. Parking is horrendous. It is prime for a tasteful village re-deevlopment, but that in itself is a lightning rod: What's "tasteful? Then you add in the somewhat unpredictable snow. Last year was insane, almost too much snow to predictable run a ski area. Years prior? This year? Kind of low tide. If folks can't see the reason for the "amusement/water theme park", that's unfortunate. I can understand the "not at my Squaw" opinion, for all of the reasons. But the business case is strong. And if this enlaces don't thrive as business they will not continue to exist. Not long term.
I imagine that part of Squaw's "problem" is that it's a tremendous place, located near the hottest economy in the country. No lack of people in the Bay Area who can and want to recreate. "KSL" and Andy Wirth did not bring the crowds, create the traffic etc. I've suggested coming to visit our son in the summer, and he laughs....."No....it's just insane, ridiculously crowded."
Now, back to KSL. I see all of the volleys about who owns what. No doubt KSL bought the properties, they have been hands on with all of the development piece, and they brought in Andy Wirth to be the CEO and run the operation. Now it's being rolled into Alterra. I have no clue what the exact ownership looks like for Squaw, it's now owned by this company which is owned by KSL's limited and general partners in the fund that backs it, and by the Crown family and their "family office", HCC. They aren't going away as far as Squaw is concerned, IMO. But there's a good chance they they will not be there where the development is finally complete, at Squaw/Alpine in what, 25 more years?
The specific challenges that Squaw/Alpine has posed {and possibly the eventual upside} doesn't seem to be present at any of the other Alterra properties. The overall plan would seem to be different. Not a 30 year massive development and transformation plan. I know that the KSL group and Andy Wirth have had their vision on how to make it best in class as a
destination resort, and that they've trimmed it back and that it will no doubt be refined. Has to be in the face of opposition. The rest of the Alterra properties don't seem to be in the same mold, and there's no suggestion of similar plans. There are some Alterra resorts that are likely to be moved, and others to be acquired. It will be fluid.
Things could be worse. In other parts of the country, New England for one, there are a mulitudeod long time regional icons that desperately need a huge amount of money invested in them. And, they present very difficult business cases. The former CNL portfolio was acquired, in total by Oct-Ziff, the hedge fund. My home mountain is one. I find it astounding that the most loyal skiers still refer to "the Mountain Company", as if that former entity runs the place. They ignore that Boyne has leased it and operated it for 12 years, and that the hard assets have been owned by a REIT and now a hedge fund. Believe me, the hedge fund is highly opportunistic, and has no long term vision or horizon. So, when you hear people complaining about "too much" going into Squaw, etc., the flip side is somewhere between almost none and not enough. The lifts spin, but why don't they are more snow? These five lifts are ancient, why do they just paint them and not replace them.....
I know that every "local" hates to see much change. I grew up with family ski homes in Stowe, and "in CO". Lets say that both have changed, quite a bit. But the actual skiing product has improved over time. There has been endless bitching over the years.
Wherever you read or draw "local" information, you can hear the jungle telegraph. "KSL has ruined Squaw, and they are going to ruin US, too." Based on what they are laying out for a plan, and the resorts that many somewhat close to this think they will ultimately acquire or partner with {as well as those that they will shed}, there doesn't seem to be anything on the horizon that would be as big, confusing, emotional or problematic as what's been going on and dragging on a Squaw/Alpine. Just
don't see it.
Pulling together a group of best in class high end destination resorts involves a lot of work. Some may need an injection of capital for some immediate infrastructural needs. Some may have the demand and need for a bit more development. Maybe an new hotel or two. Maybe some on mountain amenities. But smaller, less sweeping and clearly less controversial things IMO.
In my experience over a few decades, "the passionate local" can be a great advocate or in hindsight a dreadful roadblock. This business has so many challenges. If those who love Squaw and consider themselves to be locals want to be able to ski there in 10 years, with decent services {on mountain ski related}, they may need to "give" a bit to let the money form the well heeled "Joey's" come in.
We have a lot of really hard-ass skiers, thought the country, who pull into the parking lot, boot up, ski a great day, and then pull and sandwich and PBR out of the cooler. Great skiers, local fabric, many characters. Some ski 100+ days a season, on a pass that they bought. Some may buy a beer at the base. But for the most part the only money they spend is on a season pass. The industry would close tomorrow if forced to deal with just that customer, as great as they are in so many ways.
I find that in some mountain/resort towns there is a pretty good balance of thinking among the local crowd. Those with a touch of gray hair tend to get it. They others bitch about cost.....like housing cost. Is KSL driving up Tahoe housing prices? Doubt it. Bringing in families and couples who will vacation for a week or more a year, and spend a lot of money is pretty much essential for a good sized ski resort. And operating the little ones is just
hard......
My suggestion is to give this a chance. The group of mountains being pulled together, for a serious ski couple, just blows MTN away, and that alone is very attractive to hundreds of thousands of skiers. It's good for business, I think.
The issues of which lifts spin when, what's groomed and what isn't, where they might ned to make snow, etc. will have NOTHING to do with KSL. At Squaw, that is Andy Wirth and his team. Nowthey obviously have targets to hit, and profit to generate, but nobody is that far in the weeds.
Or so I hear form a few people who are pretty involved. Alterra has a really good team coming together. They know the business. Eric Resnick, personally, knows more about the ski business than anybody in the PE business. He loves it, and he's not in it to wreck it.
